A New Environmental Tax On Oil Companies

Ministries of Environment and Energy are considering imposing an “environmental tax” on hydrocarbons companies operating in the south of the country, in accordance with new amendments to be submitted to the Parliament for approval.

A source close to the state owned Sonatrach group revealed to Echorouk reporter that experts at the Ministry of Environment are conducting researches on the repercussions of the gas emissions of the hydrocarbons companies on the environment. 

The source mentioned that the ministry will submit new amendments to the Parliament later this year, to force the companies to pay an environmental tax from their benefits, to be destined to the development of the desert areas. 

The bill stipulates that oil companies will be assigned to respect new book of specifications relating to the protection of the environment and limiting gas emissions, before being awarded any oil exploration contract.

However, several towns in the south of the country are claiming to be granted compensations for the risk of environmental disasters, similar to the explosion of pipelines in Gassi Touil in 2006. Experts however recommend reinforcing safety measures around oil installations to anticipate any of such incidents.